ICICI Bank's hard fall

ICICI, India's biggest private bank reported earnings increase of 4% to $202.2 million for the fourth quarter. It also reported that it will issue further shares in both Indian and US markets to raise almost $5 billion in new capital to fund growth. The company expects most of the funds to be used for further lending.

To put this share offering in perspective the total market cap of ICICI bank is about $20 billion so this represents a dilution of 25%. Markets reacted negatively sending the stock down 8.5% as of this posting.

State Bank of India, India's largest lender is also planning to raise about $2.5 billion in additional share offering.

Most of the funds with Indian exposure hold ICICI bank as one of their top ten holdings

Here is the list of Indian funds that their ICICI exposure

India fund (IFN:) 3.52%
Morgan Stanley India Investment Fund (IIF): 5.9%
The iPath MSCI India Index ETN (INP): 8.14%